Following is information about Sleek Pleats (SP) Corporation. The company has no preferred stock. Type of Proportion of the Type of Capital After-Tax Cost Capital Capital Structure Debt, rdt 7.0% Debt 30.0% Equity 70.0 Common equity Retained earnings, I's 14.0 New issue, le 16.0 The firm expects to retain $210,000 in earnings this year to invest in capital budgeting projects. If the SP's capital budget is expected to equal $290,000, what required rate of return, or marginal cost of capital, should be used when evaluating capital budgeting projects? a. 12.3% b. 11.5% c. 11.9% d. 10.5% e. 13.3%